Market Analysis

Gold rises as worries recede over the impact of the Omicron

GOLD

Gold is rising during early Wednesday trading, as Treasury yields and the US dollar started to drop as worries recede over the impact of the Omicron variant. Right now, it is difficult to find a direction for the precious metal, with markets remaining volatile. However, as investor sentiment appears to be returning to the pre-Omicron dynamic, inflation and central banks’ tightening looks set to return to the top of the agenda. In such a scenario there is scope for further US dollar gains, which could trigger further downsides for gold.

Ricardo Evangelista – Senior analyst, ActivTrades

Source: ActivTrader

 

FOREX

The US dollar is down during early Wednesday trading, as risk appetite continues to increase amongst investors. The greenback losses results, to a large extent, from the recovery of risk-related currencies, following reports that the new Omicron variant may have a less severe impact than initially thought. The relief is visible amongst traders, with risk-related assets recovering to pre-Omicron levels, with the Australian dollar recording a gain of 1.7% against the US dollar and 2.28% to the Japanese yen so far this week.

Ricardo Evangelista – Senior analyst, ActivTrades

Source: ActivTrader

 

 

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